Workers in the UAE can expect higher paychecks in 2024, with corporations projected to implement salary increases of approximately 4.5%, according to a report by recruitment specialists Cooper Fitch.
The anticipated rise in compensation is attributed to the robust performance of the country's non-oil sectors, an increase in the UAE's OPEC+ oil output quota, and the imperative for employers to retain top talent.
The report, based on a survey of representatives from over 1,000 companies across the Gulf region, reveals that 53% of respondents in the UAE plan to increase employee salaries this year. Among those planning wage increases, 39% expect salaries to rise by up to 5%, while 9% plan an increase between 6% and 9%, and approximately 5% are preparing for an increase of 10% or more.
"More than half of this year's respondents intend to increase remuneration in 2024," remarks Trefor Murphy, Founder and CEO of Cooper Fitch, emphasizing the survey's beneficial effects on job searchers. Since a larger demand for skill usually leads to better compensation, this is good news for anyone looking for work in the emirates.
The hiring outlook for 2024 also appears positive, with 56% of respondents expressing an intention to increase their workforce over the next 12 months. However, 20% are planning to reduce their headcount.
The United Arab Emirates' (UAE) attempts to diversify its economy and keep up with technological innovation have led to an uptick in hiring, according to Cooper Fitch. Forecasts indicate that the real estate and technology industries would be key in driving the UAE's economy to a 3% growth in 2023. The UAE has quickly become a popular location for high-end real estate due to the high demand from both local and international investors. Property sales in Abu Dhabi and Dubai have been particularly robust.
The International Monetary Fund (IMF) estimates non-oil GDP growth of more than 4% in 2024. Reflecting on these factors, Cooper Fitch expects salaries in the UAE to increase by 4.5% in 2024, according to the report.